Power market reform takes a crucial step! New energy enters the market in Shandong province.

The National Development and Reform Commission and the National Energy Administration issued policies this year to promote all new energy-generated electricity to enter the electricity market, with the grid electricity price determined through market trading. Recently, the comprehensive entry of new energy into the market has been successfully implemented in Shandong, marking a key step in the market-oriented reform of the electricity sector. In Linyi City, Shandong Province, the country's first new energy incremental project mechanism electricity price bidding is currently underway. In the first round of bidding, over 3,000 new energy projects participated, covering wind power and solar power generation. The new energy mechanism electricity price formed in this bidding process acts as a dynamic "price insurance." During periods of low electricity market prices, the "price insurance" pays costs to ensure that projects receive the electricity price they were awarded when selected. During periods of high electricity market prices, the "price insurance" will reclaim profits exceeding the awarded electricity price for the projects.